Sri Lanka asks India to set-up a FIU to trace illegal funds

India’s Financial Intelligence Unit sought by Sri Lanka, is expected to aid the island nation in tracing billions allegedly stashed overseas by the erstwhile Rajapaksa regime. FIU, in coordination with the investigation and enforcement agencies, deal with the money laundering and related crimes globally and reports directly to the Finance Minister.

The Dollar Business Bureau Srilanka-TheDollarBusiness According to the latest reports, Indian Prime Minister Narendra Modi is going to visit Sri Lanka in March, marking the first visit of an Indian PM in over 25 years. This visit of Modi is scheduled after a month after the visit of Sri Lanka's newly elected President, Maithripala Sirisena, to New Delhi in mid-February. Modi, during his upcoming visit is expected to travel across Sri Lanka, including to the North, where India has its own infrastructure initiatives in place, including a project to build 50,000 houses for war-displaced people, say the sources. Relations between Sri Lanka and India seems to have picked up pace after the new president took over chair in the island nation. According to the latest improvement over improving ties between India and Sri Lanka, Colombo has asked India to help Sri Lanka set up a Finance Intelligence Unit in the island nation. This FIU being setup by India is expected to aid Sri Lanka in tracing billions allegedly stashed overseas by the erstwhile Rajapaksa regime. The Sri Lankan government has approached the Government of India for this aid and the official announcement is expected soon, say the sources. We could help close neighbor Sri Lanka with capacity building exercise regarding FIU, an official was quoted to have said the sources. India is also expected to consider Lanka’s proposal seeking Reserve Bank of India’s expertise in tracing money allegedly hoarded in tax havens. India has set up FIU in November 2004 as a national agency to analyse and disseminate information related to suspect financial transactions. FIU, in coordination with the investigation and enforcement agencies, deal with the money laundering and related crimes globally and reports directly to the finance minister. If India gives green signal to the request made by Sri Lanka, this is will be a positive sign for both the nations over expansion of bilateral relations and this will likely foster the bilateral trade between the two nations. We will have to wait and see what all proposals will be placed before the Government of India, before the Sri Lankan premiere visits India in mid-February.